I am trying to learn the stock market by paper trading and had some questions about the way the market opened up the past two days (June 2nd and 3rd)
On both days, every single stock I was holding crashed and hit my stop order within minutes. Looking at a sector map, it looks like this would have happened to just about every stock unless it was in the utilities sector, and yesterday the same thing except it was the healthcare sector.
Every stock I had bought didn't seem to violate any guidelines. Analyst ratings all looked good. Price action looked good. No negative news.
I would really like to avoid this happening with real money. Every time I make a bad trade I like to identify the problem and how to avoid it. But I can't seem to come up with anything. So what I am trying to figure out is -
1. is this a common occurrence?
2. what causes one sector to do so well while all others crash?
3. can this be predicted beforehand?